MUMBAI–Amara Raja Energy and Mobility Limited reported a nearly 45% decline in consolidated net profit for the second quarter of fiscal 2027, as higher costs and shrinking operating margins offset strong revenue growth across its battery businesses.
The company posted a net profit of Rs 153 crore for the quarter ended September 2026, a 44.8% decline from Rs 277 crore in the same period a year earlier, according to a regulatory filing released Monday.
Revenue from operations increased 18.5% to Rs 4,109 crore, compared with Rs 3,467 crore in the corresponding quarter of the previous fiscal year.
Despite the rise in sales, the company’s operating profitability weakened. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 3.4% to Rs 361.6 crore from Rs 374.3 crore a year earlier.
The EBITDA margin narrowed to 8.8% from 10.8%, reflecting continued pressure on operating costs.
Along with its quarterly financial results, Amara Raja announced an interim dividend of Rs 4.30 per equity share for fiscal 2027. The company designated November 6 as the record date for determining shareholder eligibility.
The latest dividend is lower than several recent distributions. The company declared an interim dividend of Rs 4.80 per share in November 2023, followed by Rs 5.40 per share in November 2025. It also announced a dividend of Rs 5.20 per share in July 2026.
Amara Raja said demand remained strong across several business divisions despite the decline in profitability.
The company reported double-digit growth in its automotive battery aftermarket and original equipment manufacturer (OEM) segments, supported by continued strength in its Home Energy business.
The performance highlights the contrast between rising demand for the company’s products and the cost pressures affecting its earnings.
Amara Raja released its quarterly results after the stock market closed Monday.
Before the announcement, the company’s shares finished 3.14% higher at Rs 708.40 on the National Stock Exchange.
The stock has gained 2.34% over the past week but remains down approximately 5% over the past month.
Amara Raja shares have declined 23.47% since the beginning of the year and have lost 29.34% over the past 12 months, reflecting continued weakness in the company’s stock performance despite its recent revenue growth. (Source: IANS)
